Wednesday, January 15, 2025

No Tax on Trauma Act

Mary — The Arella Foundation is calling for Congress to pass the No Tax on Trauma Act, which would ensure emotional injury settlements are tax-free, like physical injury settlements. If you agree, add your voice by signing the petition.

End the Unfair Taxation on Emotional Injury: Support the No Tax on Trauma Act

194 have signed Arella Foundation's petition. Let's get to 200!

Sign now with a click

Imagine surviving one of the most traumatic experiences in your life, only to be financially penalized for seeking justice and healing.

Below is a story of a survivor of sexual assault:

"In 2017, my life changed forever. After surviving a sexual assault, I fought to rebuild my life and sought justice through the legal system. I was awarded a $60,000 settlement to help me heal and move forward. But instead of relief, I was hit with a devastating $55,000 tax bill—because my pain and suffering were treated as taxable income."

Emotional injuries are just as real as physical ones. But under current tax law, emotional damages are taxed unless directly tied to a physical injury, punishing survivors for the trauma they've endured.

This injustice impacts survivors of all types of trauma-whether caused by violence, abuse, accidents, or other life-changing events. Up to 37% of emotional damage settlements are taken by taxes-money that should be used for recovery, not penalized by the government.

The Solution

The No Tax on Trauma Act would end this unfair treatment by ensuring emotional injury settlements are treated the same as physical injury settlements-tax-free.

This is not just an issue for survivors of specific incidents; it's an issue of fairness and humanity for anyone who has endured trauma.

How can you help

Join Arella, a nonprofit advocating for all survivors, in urging Congress to pass the No Tax on Trauma Act. Survivors should not have to endure financial punishment for seeking justice and healing. Together, we can:

  • Amend federal tax laws to exempt emotional damages from taxation, aligning them with physical injury settlements.
  • Recognize the importance of mental health and emotional well-being in our legal and tax systems.
  • Ensure fairness and consistency for individuals seeking justice for all forms of injury.

To learn more about this policy and to keep up with our progress, visit us at arella.org/notaxontraumaact

Sign this petition today to demand change. Survivors of all forms of trauma deserves to be made whole, not further punishment. 

Sign now with a click

Visit petition page

Victories Every Day –
100% Funded by You
Not beholden to politics or power brokers, Change.org is free for people everywhere to make change. Every day there are real victories for issues you care about, only possible because we are 100% funded by everyday people like you.
Will you stand with us to protect the power of everyday people to make a difference?
Support Change.org

At Change.org, we believe in the voice of everyday people. Is there something that you want to change?


How useful was this email?

1
2
3
4
5

Not Useful

Useful

No comments: